Author: Kanayan Tamar

GEORGIAN TBC BANK TO ENTER AZERBAIJAN

The Financial
Dec 11 2007
Georgia

The FINANCIAL — Mamuka Khazaradze and Vakhtang Butskhrikidze,
TBC Bank will make official statement regarding bank expansion in
Azerbaijan on 11 December, TBC Bank reported 1 hour ago.

Earlier Khazaradze said that TBC Bank will use additional investments
to expand in the South Caucasus region.

He noted that investments in Armenia are also considered, but he added
"Armenian market is less interesting than that of Azerbaijan."

"And now TBC Bank will become a grip through which it will be
possible to expand in the region… We also eye Ukrainian market,"
Khazaradze said.

On September 30, 2007, TBC Bank’s total assets exceeded 1 Billion USD.

By the end of last year, the bank’s total assets amounted to 560
million USD, meaning that during the last nine months of the current
year there was an 80% increase.

According to the most current information, TBC Bank’s total capital
accounts for 264 million GEL, total credit portfolio is 1,077 million
GEL, and the volume of deposits portfolio totals 772 million GEL.

GYUMRI CITY HALL VS. CHAP LLC: ATTORNEY OF CITY HALL WHISPERED TO THE JUDGE

Lragir
Dec 11 2007
Armenia

On November 23 the City Hall of Gyumri filed a suit against Chap LLC,
owner of Gala TV of Gyumri, at the Economic court of Armenia, for
removing the transmission equipment of Gala TV from the transmission
tower which belongs to the City Hall.

The hearing started December 10 at the Gyumri residence of the Economic
Court. In the beginning of the hearing Justice Edward Nahapetyan
asked the sides if they have a plan of reconciliation. The council for
defense Karen Tumanyan offered to let the transmission tower to Chap
LLC for 6 months, but the prosecution declined. Then Karen Tumanyan
made a counter-claim for involuntary servitude on the transmission
tower and 26.04 sq m of land. The judge declined the counter-claim
and the appeal against the judge.

During the adjournment the reporters asked why the City Hall does
not demand the rent of the tower for the past 2,5 years, the head of
the legal department of the City Hall Ara Sargsyan, the attorney of
the City Hall, said: "It is our fault." Meanwhile, V. Khachatryan,
founder of Chap LLC says it was not done because of the lack of legal
grounds, and the City Hall believes that the claim would be declined
because the City Hall did not set any condition or fee for rental
because the tower was not the property of the City Hall.

The next hearing started at midday on December 11. The Judge said
the appeal against him had been declined and the same justice would
hear the case. After the second appeal of Karen Tumanyan Justice
Nahapetyan adjourned the hearing for an hour and on returning to the
courtroom stated that the solicitation was declined. The advocate
asked if the judge made a decision and the judge answered no. Nobody
understood why the judge had adjourned the hearing if he did not make
a decision. After the second appeal the justice closed the hearing
and after consulting the attorney of the City Hall of Gyumri in a
whisper stated that the next hearing would be on December 13.

After the hearing the judge tried to have a talk with Karen Tumanyan
about the appeal regarding "his close relations with Mayor Vardan
Ghukasyan". The reporter of Gala TV noticed this and switched on the
camera. The attorney of the City Hall Ara Sargsyan prompted to the
judge in a whisper that the camera was on. Justice Nahapetyan concluded
his conversation with the words "I am happy that the attorney thinks
the mayor and I are friends."

NEGOTIATION ON KOCHARYAN’S FUTURE

Lragir, Armenia
Dec 10 2007

We have learned that Robert Kocharyan is negotiating his political
future with official Moscow. According to our source, two options
are being considered: prime minister of Armenia or head of a holding
including the Russian companies operating in Armenia. In return for
supporting Kocharyan’s plans the Russian side demands the companies of
value, namely the cement factories of Hrazdan and Ararat and Armavia
Airlines. In fact, two days ago an agreement was signed in Yerevan
according to which VTB will finance the operation of the mine of
Teghut, which actually means Russian control on the mine.

HRAYR KARAPETIAN: ARFD’S MAXIMUM PLAN IS TO HAVE A PRESIDENT FROM DASHNAKTSUTIUN

Noyan Tapan
Dec 7, 2007

YEREVAN, DECEMBER 7, NOYAN TAPAN. ARFD is ready to cooperate with
all political forces in the forthcoming presidential elections. Hrayr
Karapetian, the Head of the RA National Assembly ARFD faction, stated
at the December 7 press briefing.

He expressed an opinion that the most part of the people, who is
already familiar with ARFD’s activity, as well as "the political
forces, whose activity proceeds from national, state interests" will
support ARFD and the candidate nominated by it, ARFD Bureau member,
NA Vice-Speaker Vahan Hovhannisian, in the upcoming presidential
elections. He assured that those supporting them will make statements
soon.

After the expiration of term of ARFD’s cooperation agreement signed
with the political coalition, after the presidential elections,
the party will clarify the further format of cooperation with the
coalition, which will greatly depend on the process of presidential
elections, which, in H. Karapetian’s opinion, "will introduce many
and many corrections into the political sphere." He also said that
ARFD’s maximum plan is to have a President from Dashnaktsutiun.

ARMENPRESS

COAF AND CARD SIGN PARTNERSHIP MEMORANDUM

YEREVAN, DECEMBER 7, ARMENPRESS: Children of
Armenia Fund (COAF) and Center for Agribusiness and
Rural Development (CARD) signed a Memorandum of
Agreement for a partnership in establishing a Milk
Marketing Cooperative and Milk Collection Center in
the village of Lernagog, Armavir marz.
This joint effort will greatly contribute to
sustainable growth of the Lernagog community through
assisting local dairy farmers to increase milk
production volumes and efficiently collect and sale
high quality milk.
Milk Collection Center will be located in the
community with renovated physical premises according
to the food safety standards and equipped with
contemporary milk testing and cooling equipment. The
Center will be operated by the Milk Marketing
Cooperative established by 39 dairy farmers of the
community.

ARKA News Agency, Armenia
Dec 5 2007

‘Armrosgasprom” invests $82 mln in gas supply in 2002-2007

YEREVAN, December 5. /ARKA/. `’ArmRosgasprom” Armenian-Russian
company invested about $82mln in the period from 2002 to 2007 in
implementation of the program on restoration of gas supply and
provision of gas connections in the territory of Armenia.

This allowed increasing the level of gas supply coverage in the
country from 21% to 90% bringing Armenia to the group of leaders on
this indicator not only among CIS (Commonwealth of Independent
States) countries, but also in the world, the Press Service of
ArmRosgasprom reported adding that restoration of gas supply in the
country is one of the prioritises in the company’s activities.

As of December 1, 90% of electricity consumers (650,000 subscribers,
including 505,000 real gas supply subscribers) are potential
customers of gas distribution network of Armenia.

`’As a result, the number of subscribers-consumers of natural gas in
Armenia exceeded the indicator of Soviet times by 5% – 485,000,” the
press service of the company reported.
Currently, 455 municipal and rural communities have opportunity of
using gas; 104 of them have never had gas supply before. Fore the
first time gas supply was provided not only to a number of
residential areas in Yerevan (Davitashen, Erebuni, South-Western and
Nor Nork Massifs 7, 8, 9), but some other cities of Armenia.

The length of the existing gas distribution network increased from
9,168 kilometers in 2002 to 11,573 kilometers.
`’The gas supply program under implementation allows obtaining an
essential economic effect. According to various estimates, due to
transfer from other energy resources to gas the population’s annual
savings are about $250-300mln, and the transport sector of Armenia
saves some $180-200mln,” the press service reported.

The company almost completed the program of restoration of gas supply
of economically effective populated areas of the country. The further
gas supply program will be possible under social projects developed
and implemented by the Government of Armenia, budgets of local
governments and charity projects, the press release says.

`’ArmRosgasprom” Closed Joint Stock Company enjoys monopoly for
delivery and distribution of the Russian natural gas on Armenia’s
domestic market. The company was founded in 1997; its capital
currently totals $580mln and the shareholders are `’Gasprom” open
Joint Stock Company (57.59%), Armenia’s Ministry of Energy (34.7%)
and `’Itera” oil and gas company (7.71%). -0–

Lragir, Armenia
Dec 5 2007

THE WATERS OF THE FATHERLAND

Bruce Tusker, a British engineer, is knocking in vain at the doors of
the leaderships of Armenia and the World Bank. He said there was
misuse in the World Bank loan project worth 30 million dollars for
the improvement of water supply in Yerevan. Certainly, nobody listens
to him in the government of Armenia and the World Bank. Tusker says
the ex-country director of the World Bank Roger Robinson was also
involved in misuse. He overlooked certain circumstances which
breached the rules of the World Bank and risked corruption.

It seems that the World Bank leadership to which Tusker voiced
concern in the form of documents should be interested in revealing it
as soon as possible to dispel doubts that any WB official may be
involved in corruption in any country or make the official
responsible immediately to show that the World Bank does not tolerate
such officials. However, a few days ago Tusker stated in Yerevan the
World Bank does not seem to be interested in investigating and
revealing the truth.

The behavior of the World Bank is quite normal. This structure needs
no scandals because the purpose of the bank is quite difference. It
is a geopolitical instrument, which solves political issues through
financial and economic levers. Consequently, a few millions are not
worth for the bank to become involved in a scandal, accuse even the
bank’s ex-officials of misuse, because it is unnecessary damage to
the bank’s reputation. If the investigation and the revelation of the
truth were part of the aims of the bank, it would be another issue.
In other words, if the political aims which are fulfilled in
different countries of the world through the World Bank include some
revelation of corruption in those countries. Therefore, it should not
be ruled out that the issue raised by Tusker may be forgotten but may
also wake up at some moment and turn a serious story with a number of
revelations.

In this context, the stance of the Armenian government and most of
all the office of prosecutor general is amazing. The procuracy should
have already invited Tusker for a few times to find out what
corruption risks he is talking about. After all, it concerns Armenia,
and Armenia is known to wage a ruthless war against corruption.
Meanwhile, the prime minister only noted ironically on behalf of
official Yerevan that `the opinion of the British engineer is
important to us’.

Meanwhile, the problem is not only the British engineer but also the
Armenian politician as the Armenian presidential candidate Vahan
Hovanisyan can be referred to. A few years ago he led the ad-hoc
committee which monitored spending of foreign grants and loans and
observed doubtful and worrying facts about the 30 million-worth water
supply project. However, the internal political agreement smoothed
everything, and in 2003 the ARF Dashnaktsutyun got a place in the
ruling coalition. Meanwhile, the state of water supply did not
improve, only the Italians in charge of improving were replaced by
the French who borrow money from the French government not the World
Bank. Although first they collected it from the citizens of Yerevan,
raising the bills in advance, allegedly for improving water supply.
However, it turned out that it is not enough, and now they are likely
to borrow money from the French government.

JAMES HAKOBYAN

ARKA News Agency, Armenia
Dec 6 2007

Armenia intends to buildup electric energy generation by small hydro
electric plants

YEREVAN, December 6. /ARKA/. Armenia intends to buildup electric
energy generation by small hydro electric plants up to 10% of demand
for electric energy, Armenian Energy Minister Armen Movsisyan said on
Thursday.

`We have managed to attract private investors’ attention to small
hydro electric plants construction. Thanks to that, some 58 plants
generating the power covering 5% of our domestic demand for electric
energy are already registered in Armenia’, he said.

He said the programs under implementation now will make it possible
to 10% of demanded electric energy in coming two or three years.

`However, our domestic consumption is growing as well, and unlike
nuclear power plants, hydro electric plants can’t work in basis
regime, since hydro resources depend on seasons’, Movsisyan said.

Public Services Regulatory Commission says 58 small hydro electric
plants function in Armenia now.

Their annual output totals 240 million kilowatt/hour.

The commission says 104 small hydro-electric plants of 184 megawatt
capacity are planned to be constructed in Armenia by 2015.

National Statistical Service of Armenia says 4894.6 million
kilowatt/hour of electric power has been generated in Armenia over
the period between January and October 2007. This result is 0.2%
higher than that of the same period a year earlier. M.V.-0–

SHAVARSH KOCHARIAN URGED NOT TO "TURN THE ELECTIONS INTO CORRIDA"

Mediamax
December 4, 2007

Yerevan /Mediamax/. Leader of the National-Democratic Party (NDP)
Shavarsh Kocharian stated in Yerevan today that "only [candidate for
the position of the President] Vazgen Manukian may rise above the
fuss between the former and the present authorities of Armenia and
raise issues of national importance".

Mediamax reports that Shavarsh Kocharian stated that the upcoming
presidential elections of February 19 of 2008 will not be solving at
bottom the issue of shift of power, since, in accordance with the
renovated Constitution, the newly-elected President will not have
direct influence on the parliamentary majority.

"It is very important not to turn the elections into corrida and
hold a civilized political struggle for the elector to be able to
get determined during the pre-election campaign", Leader of NDP stated.

Shavarsh Kocharian stated that his party decided to support the
candidature of the Leader of the National-Democratic Union Vazgen
Manukian, since it does not accept the system of state administration,
oriented to a concrete person, which is proposed by the Ex-President
of Armenia Levon Ter-Petrosian.

Shavarsh Kocharian stated that he is attentively following all the
speeches of the Ex-President and sees no changes in the approaches,
to which Levon Ter-Petrosian was adherent 10 years ago.

VARDAN OSKANIAN TO MAKE SPEECH AT OSCE FOREIGN MINISTERS’ MEETING

Noyan Tapan
Nov 27 2007

YEREVAN, NOVEMBER 27, NOYAN TAPAN. RA Foreign Minister Vardan
Oskanian is leaving for Madrid on November 28 to take part in the OSCE
Foreign Ministers’ annual meeting to be held on November 29-30. The
RA Foreign Minister is to make a speech at the meeting. According to
the report of the RA Foreign Ministry, Minister Oskanian is to meet
with the OSCE Minsk Group Co-chairs, as well as will have a number
of bilateral meetings in Madrid.